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Stock exchange release – Published: 12.02.2003 9:30:12


Consolidated turnover: EUR 37 million        + 9.4%
Operating profit: EUR 2.7 million            -40.7%
Net profit: EUR 1.3 million                  -55.3%
Proposed dividend: EUR 0.25 per share

Within industrial technology design - Etteplan’s field of 
operations - 2002 was a year of pronounced structural change.
The market situation was tight throughout the year and industry
made operational arrangements concerning design activities,
especially outsourcing. For a service company like Etteplan, the
year was characterized by the dual aspects of pressure on
profitability due to the tight market situation and opportunities
afforded by M&A arrangements.

During the year Etteplan carried out three outsourcing projects
in Finland and one in Germany. In the first phase, these meant
the transfer to the Group’s employ of about 150 design engineers.
In addition, the company acquired a majority holding in an approx.
50-employee engineering design company in Finland, a majority
holding in a fairly small (15 employees) engineering design
company in northern Italy and a 35% stake in a 130-employee
electronics design company in Sweden. All in all, the Group’s
personnel grew by more than 350 employees, counting associated
companies, increasing its total staff by about 60%. The number
of employees abroad has grown to 206, including the joint 
venture’s staff. Implementation of the expansion arrangements
took place largely in the latter part of the year, and they will
not have a major impact on turnover until 2003.

Turnover in 2002 showed moderate growth on the previous year.
Demand fluctuated sharply in different fields. Thanks to
Etteplan’s operational model, flexibility and network solutions,
which have been beefed up through investments over the past
years, the company succeeded in evening out the ups and downs
in the workload of individual sites and sectors. Despite an
exceptionally tough market situation, profitability was
maintained at a satisfactory level, though it did fall
substantially compared with the previous year. The focus of
operations was on building future capabilities in line with
company strategy, whilst exploiting the structural changes in
the industry.

Turnover and result

The Etteplan Group’s turnover grew by 9.4% on the previous year,
rising to EUR 37 million (33.8 million in 2001). The increase in
turnover was attributable to organic growth, the outsourced units
taken on and acquisitions. Earnings were below last year’s figure
but were satisfactory in view of the weak demand in the market.

Operating profit was EUR 2.7 million (4.6 million), or 7.4% of
turnover (13.6%). Profit for the financial period before extra-
ordinary items and taxes was EUR 2.8 million (4.8 million). 
The consolidated financial statements show a net profit of 
EUR 1.3 million (EUR 2.8 million).

Earnings per share were EUR 0.30 (0.69). Equity per share was
EUR 2.90 (EUR 2.89). The return on investment was 19.7% (37.8%)
and the return on equity 12.6% (28.0%).

Fourth-quarter turnover was EUR 10.7 million (9.4 million) and
operating profit was EUR 0.8 million (1.1 million).

Business Operations

Etteplan acts as a partner of large and medium-sized inter-
nationally operating industrial companies, carrying out entire
design projects or continuous product development and equipment
design. The Group’s design services consist of 1) machine
technology and mechatronics design, 2) automation and electrical
design as well as 3) electronics and software design. The
customer base comprises equipment manufacturers and end-users
in the wood-processing industry as well as the automotive,
lifting and hoisting equipment, process and electronics

Operations have been divided into four different business areas
which are not separate business units. The estimated breakdown
of turnover by business area was the following at the end of
the financial year:

          Production Lines                   32%
          Pulp and Paper                     27%
          Lifting and Hoisting Equipment     21%
          Electronics                        20%

The Production Lines business had satisfactory overall demand
during the report period. Demand for the services of the Pulp
and Paper as well as Lifting and Hoisting Equipment business
areas remained stable. The market of the Electronics business
fluctuated sharply. Thanks to the expansion of services, the
overall situation held up fairly well. Demand for engineering
design services in Sweden was weak in the first part of the year
but improved after the summer. In Germany and Italy there was
stable demand and the units in both countries reached their
budgeted earnings.

Achieving a good competitive situation has called for strong
inputs into developing engineering design services, improving
internal efficiency and personnel recruitment. The strengths
of Etteplan’s operations are an efficient design process,
high-quality operations in line with an ISO-9000 system and
capable staff. Thanks to these strengths, Etteplan has become
a strategic partner of a number of well-known Finnish blue-chip

Major events in 2002

In January Etteplan acquired a 35% holding in the Swedish
engineering office JA Produktutveckling AB. The acquisition
bolsters the Etteplan Group’s operations in Sweden’s industrial
technology market and opens up for the Group the possibility
of exporting Finnish engineering expertise to Sweden’s automotive

In February the company acquired a 51% holding in Di & Esse
S.r.l. of Italy. The company primarily serves the Group’s
existing internationally operating customer base.

In June Etteplan acquired a 60% holding in Insinööritoimisto
Keskilinja Oy, which operates in Vaajakoski. The deal
strengthened the company’s expertise, particularly within
machinery and equipment for the wood-processing industry.

June saw the founding, together with Perlos Corporation, of the
joint venture EPE Design Oy, which took on 14 Perlos employees.
The joint venture was established for the purpose of producing
design services for developing and manufacturing new products.

In October Konette GmbH, which is part of the Etteplan Group,
concluded a cooperation agreement with Kone GmbH. Under the
agreement, 33 employees of Kone’s escalator unit in Germany
joined the Etteplan Group. The agreement is a natural conti-
nuation of the companies’ smooth cooperation in Finland.

A cooperation agreement was signed with Rautaruukki Oyj in
November. According to the agreement Rautaruukki will purchase
a substantial part of its capital expenditure-related design
and project management services from Etteplan. Under the terms
of the agreement 47 employees of Rautaruukki Steel Engineering’s
Oulu location will join Etteplan’s staff on 1 January 2003.

The joint venture Etteplan Production Lines Oy was founded
together with Nextrom Oy in December, whereby 53 Nextrom
employees joined the new company. The joint venture will
provide engineering design and project services that are
required for developing and fabricating new industrial
production lines.

In December the company signed an agreement on the automation
and electrical design for a waste water treatment plant in
St Petersburg. The deal is the company’s largest automation
and electrical design assignment so far.


The operations and number of personnel of the Etteplan Group have
grown steadily. During the financial year the Group employed an
average of 660 people (561), an increase of 17.6%. At the end of
the period (31 December 2002) the payroll numbered 723 employees
(583). Counting the associated companies, the number of employees
was 837. The increases in staff were due mainly to both
outsourcing-driven organic growth and to acquisitions.

Capital expenditures

The Group’s total capital expenditures amounted to EUR 4.5 
million (2.7 million). The largest capital expenditure was the
purchase of a holding in JA Produktutveckling AB. Other
investments went mainly for the purchase of computer software
and hardware as well as for the development of information
networks and a project management system.

Financial position

Etteplan’s financial position remained strong. Total assets at
31 December 2002 stood at EUR 22.6 million (EUR 20.0 million),
of which cash and cash equivalents as well as securities held
as financial fixed assets totalled EUR 7.2 million (EUR 7.2
million). The Group’s interest-bearing liabilities at the end
of the period totalled EUR 1.0 million (0.9 million). The
equity ratio was 63.4% (65.0%). Liquidity was good throughout
the report period.

Shares, price trend and share buy-back

In June the company increased its share capital through a
directed share issue in accordance with an authorization
granted by the Annual General Meeting. The share issue was
connected with the purchase of shares in Insinööritoimisto
Keskilinja Oy, whereby the selling shareholders were offered
162,108 new shares with a total accounting countervalue of
EUR 16,210.80 through a directed issue. The subscription
price of the shares was determined on the basis of the 
companies’ fair values. The share capital at 31 December 2002
was EUR 427,460.80 and the number of shares outstanding was

The number of Etteplan Oyj shares traded during the financial
year was 390,375, to a total value of EUR 2.1 million. The
share price registered a low of EUR 3.90, a high of EUR 6.44
and the average price was EUR 5.32. The Group’s market
capitalization at 31 December 2002 was EUR 17.3 million and
it had 1,267 shareholders.

During the financial year the company bought back 12,000 of
its own shares. At the end of the financial year the company
held 24,100 of its own shares (treasury shares) to a total
value of EUR 139,418.34.

Etteplan has put into use the Insider Guidelines issued by
Helsinki Exchanges.

Stock options and share issue authorizations

The Annual General Meeting, held on 26 March 2002, authorized
the Board of Directors to decide within one year from the
Annual General Meeting on the floating of one or more issues
of convertible bonds and/or the granting of stock options
and/or to decide on increasing the share capital by offering
in one or more instalments a maximum of 822,500 shares with
an accounting countervalue of EUR 0.10 at a price determined
by the Board of Directors and otherwise on the terms and 
conditions decided by the Board of Directors.

The Annual General Meeting further authorized the Board of
Directors to decide on buying back the company’s own shares
in one or more instalments such that the company can buy back
a maximum of 205,625 of the company’s shares, having an
accounting countervalue of EUR 0.10, with distributable funds
in a proportion other than shareholders’ existing holdings
and to decide, on the basis of the authorization according
to the resolution, on transferring the company’s own shares
thus bought back in one or several instalments. The
authorization granted to the Board of Directors comprises
the right to transfer a maximum of 205,625 shares with an
accounting countervalue of EUR 0.10 such that the aggregate
accounting countervalue of the shares to be transferred and
the votes conferred by them is a maximum of five (5) per cent
of the company’s share capital and the total voting rights
conferred by the shares.

All the company’s permanently employed staff are covered by
Etteplan’s stock option programme.

Board of Directors, President and CEO and Auditors

The members of Etteplan Oyj’s Board of Directors during the
report period were Tapani Mönkkönen, Chairman, the other members
being Tapani Tuori, Matti Virtaala, Ritva Mönkkönen and 
Heikki Hornborg.

The company’s President and CEO has been Heikki Hornborg, 
M. Sc. (Eng.).

The company’s auditor was the firm of independent public
accountants PricewaterhouseCoopers Oy, with Mika Kaarisalo,
Authorized Public Accountant, acting as chief auditor.

Board of Directors proposal for the disposal of profits

The Group’s distributable shareholders’ equity according to
the balance sheet at 31 December 2002 is EUR 6.8 million and
the parent company’s distributable shareholders’ equity is
EUR 5.6 million.

The Board of Directors is proposing to the Annual General
Meeting on 26 March 2003 that on the dividend payout date a
dividend of EUR 0.25 per share be paid on the company’s
externally owned shares and that the remainder be transferred
to retained earnings. In accordance with the Board of Directors’
proposal, the record date for the dividend payout is 31 March
2003 and the dividend will be paid on 7 April 2003.

Major events after the close of the financial year

In accordance with previously made agreements, the company
Etteplan Production Lines Oy, which is jointly owned by
Nextrom Oy and Etteplan Oyj (Etteplan’s holding is 81%)
began operating on 1 January 2003. The Etteplan Metals
Processing unit, which put 47 Rautaruukki Oyj employees on
its payroll, started up operations in Oulu at the beginning
of the year.

Outlook for the future

Etteplan has expanded its customer base substantially during
the past year, at the same time fortifying its customer
relationships. As a result of efficiency boosting and a wider
customer base, the company is well placed to increase its
volume of operations and earnings. Steps have been taken to
even out the ups and downs of workloads, and this means that
the company has good potential for operating flexibly and
raising its profitability. 

Etteplan will continue its efforts to strengthen and expand
all four of its business areas, both in Finland and abroad.
The principal means of accomplishing this are training
recruitment, customers’ outsourcing projects and acquisitions.

The market situation is expected to remain tight until the
global factors of uncertainty are alleviated. The company will
maintain its strong competitiveness thanks to the market
position it has achieved and to its increased volume of
operations. This means that Etteplan has good possibilities
of increasing both its turnover and operating profit in the
first quarter, compared with the same period a year ago.

Hollola, 12 February, 2003

Etteplan Oyj

Board of Directors

For additional information, contact: CEO Heikki Hornborg, 
tel. +358 3 872 9011, GSM +358 400 873 063.

The figures are unaudited.

DISTRIBUTION:     Helsinki Exchanges
                  Principal media


                                    1.1.-31.12.02    1.1.-31.12.01

TURNOVER                                   37 011           33 821
Variation in work in progress                 196              184
Other operating income                         66               41
Materials and services                       -347             -348
Staff expenses                            -26 387          -22 465
Depreciation and amortisation
according to plan                          -1 744           -1 483
Other operating expenses                   -5 852           -5 152
Share of losses from
Participating interests                      -219                0
OPERATING PROFIT                            2 724            4 597
 "               %                            7,4             13,6
Financial income and expenses                  29              211
PROFIT BEFORE EXTRAORDINARY ITEMS           2 753            4 809
Extraordinary items                             0                0
Income taxes                               -1 020           -1 435
Change in deferred tax liability              -29              -45
Minority interest                            -434             -490
NET PROFIT FOR THE FINANCIAL YEAR           1 270            2 838
 "                                %           3,4              8,4


                                    1.1.-31.12.02    1.1.-31.12.01
Intangible assets                           2 343            2 353
Tangible assets                             3 054            2 559
Own shares                                    139               75
Other investments                           2 381              578
NON-CURRENT ASSETS, TOTAL                   7 917            5 566
Stocks                                        493              252
Current receivables                         7 027            6 998
Marketable securities                       1 497                0
Cash and cash equivalent                    5 663            7 227
CURRENT ASSETS, TOTAL                      14 680           14 478
ASSETS, TOTAL                              22 597           20 043

Share capital                                 427              411
Share premium account                       5 058            4 599
Reserve for own shares                        139               75
Retained earnings                           5 565            4 006
Net profit for the financial year           1 270            2 838
SHAREHOLDERS’ EQUITY, TOTAL                12 460           11 930
MINORITY INTERESTS                          1 857            1 063
Deferred tax liabilities                      188              159
Long-term liabilities                         796              739
Current liabilities                         7 297            6 152
LIABILITIES, TOTAL                          8 281            7 050
LIABILITIES, TOTAL                         22 597           20 043


                           1.1.-31.12.02  1.1.-31.12.01  Change
                                                         for prev.
Turnover                          37 011         33 821     9,4 %
Operating profit                   2 724          4 597   -40,7 %
% of turnover                      7,4 %         13,6 %
Profit before extra-
ordinary items                     2 753          4 809   -42,7 %
Net profit for the period          1 270          2 838   -55,3 %
Return on investment, %             19,7           37,8
Return on equity, %                 12,6           28,0
Equity ratio, %                     63,4           65,0
Gross interest-bearing loans       1 006            905    11,1 %
Dept-equity ratio, %               -43,4          -48,9
Total balance                     22 597         20 043    12,7 %
Gross investments                  4 497          2 677    68,0 %
Earnings per share                  0,30           0,69   -56,0 %
Equity per share                    2,90           2,89     0,3 %

Personnel at end of period           723            583    24,0 %
Personnel, average                   660            561    17,6 %


                                    1.1.-31.12.02    1.1.-31.12.01

Cash receipts from customers               37 933           32 853
Other operating income                         66               41
Operating expenses paid                    32 050           27 053
FINANCIAL ITEMS AND TAXES                   5 950            5 840

Interest and payment paid for
financial expenses                            129               63
Interest received                             153              272
Dividend received                               5                3
Income taxes paid                           1 020            1 435
OPERATING CASH FLOW (A)                     4 958            4 617

Investment in tangible and
intangible assets                           2 346            2 448
Sales of tangible and
intangible assets                             111               64
Investments to other investments            1 463              378
INVESTMENT CASH FLOW (B)                   -3 697           -2 762

Purchase of own shares                         64               75
Long-term loans, decrease                    -101              136
Dividends paid and other
profit distribution                         1 365            1 180
FINANCING CASH FLOW (C)                    -1 329           -1 391

INCREASE (+)/ DECREASE (-)                    -68              464

THE FINANCIAL YEAR                          7 227            6 764
ASSETS AT THE END OFTHE FINANCIAL YEAR      7 160            7 227